Parex Resources Q1 Earnings Call Highlights

Parex Resources (TSE:PXT) said it is moving done a large enlargement successful Colombia, with absorption outlining a bid of acquisitions, partnerships and drilling programs that it expects volition astir treble the company’s accumulation basal and marque it the country’s largest autarkic exploration and accumulation company.

On the company’s net call, President and Chief Executive Officer Imad Mohsen said Parex executed “a bid of strategical transactions” successful the archetypal fractional of 2026 intended to summation scale, grow the company’s portfolio and amended the durability of its business.

→ McDonald's Is the Cheapest It’s Been successful Years—Does That Make It a Buy?

The largest of those transactions is Parex’s planned $725 cardinal acquisition of Frontera, which Mohsen said adds astir 37,000 barrels of lipid equivalent per time of production. He described the woody arsenic “highly accretive,” with “strong concern logic and compelling synergies,” and said it would summation the company’s reserves inventory and amended semipermanent accumulation visibility.

Parex besides announced an expanded concern with Ecopetrol successful Colombia’s Magdalena Basin. Under that agreement, Parex tin gain a 50% participating involvement successful the Casabe and Llanito blocks done a $250 cardinal gross superior concern committedness implicit 5 years, with nary upfront acquisition cost. Mohsen said the mature fields presently nutrient astir 15,000 barrels per time and connection upside done enhanced lipid recovery, waterflood optimization and improvement drilling.

Production Expected to Improve Through Second Quarter

→ How Berkshire’s New York Times Bet Looks Today

Chief Operating Officer Eric Furlan said first-quarter accumulation averaged conscionable nether 45,000 barrels of lipid equivalent per day. Although existent output was beneath first-quarter levels, Furlan said Parex expects standalone accumulation to amended done the remainder of the 2nd 4th and exit the play “at oregon supra 45,000 boe per day.”